EU Recovery Fund reaction: 'Tortuous negotiations' reveal 'tensions' but lead to 'remarkable accomplishment'

Second longest summit in EU history

Following a "marathon summit and tortuous negotiations", the EU has agreed a €750bn recovery package, alongside a €1trn+ seven-year budget, which industry figures have dubbed a "remarkable accomplishment", but one that has revealed "underlying tensions" in the bloc.

Paul O'Connor, head of multi asset at Janus Henderson Investors, said the "direct macroeconomic impact" of the coronavirus recovery package will be "fairly modest" compared to the damage caused by the pandemic. EU leaders reach deal on €750bn recovery fund "While consensus forecasts estimate that eurozone real GDP contracted 15% year-on-year in Q2, the recovery fund is expected to deliver a 6-7% boost that will take months to materialise and years to have its full effect." Despite this, O'Connor noted that the "symbolism" of agreeing the recovery package is "very important" as it r...